Karnataka High Court stays circulars withholding payment of salaries based on revised minimum wages for outsourced and contract employees

The High Court of Karnataka has stayed, till further orders, the operation of the government’s circulars that directed various authorities to withhold the payment of salaries to outsourced, contract, and daily wage employees across the State as per the revised minimum wages, which came into effect from May 22, 2026.

Justice H.T. Narendra Prasad passed the interim order on the separate petitions filed by the All India Trade Union Congress, Karnataka Rajya Sarkari Khayametharara Noukarara Okkuta, the All India Central Council of Trade Unions, and others.

The petitioner unions had questioned the circular issued by the Karnataka State Audit and Accounts Department on July 29, asking various departments to withhold payment of salary as per revised minimum wages to outsourced contract and daily wage categories of employees working in various departments.